By Melanie Borden, VP of Marketing, Celebrity Motor Cars

If you’re like many in this industry, who are researching digital retailing, but not quite finding the information they’re looking for, and left with minimal resources, I invite you along our journey into digital retailing. Over the next coming months in Dealer Magazine, I will share a series of articles based on my experience going to market with a digital retailing solution and the impact that it (may) have on overall business both online or in-store; with pros and cons included. Let’s dig in!

What is Digital Retailing?

It’s called the “Pajama Shopping” effect. Ever heard of it? I am sure you have had customers come into your showroom wearing them, but this is something different. Pajama Effect is never having to leave your sofa and being able to order almost anything you want from the comfort of your own home on your phone, tablet or computer.

As a working mom, the pajama effect works for me and I bet it works for you too. I order everything online, groceries included (especially now that Amazon Prime delivers Whole Foods 365 brand!) Some basic benefits of shopping in your PJ’s that I have found are: No lines to wait on. Stores are open 24/7/365. No salespeople to follow up with you or follow you around (although, you will see a retargeting ad remind you what you were looking at) and lastly my favorite, reviews are listed usually next to the item you are shopping for. The list goes on and on, you can come up with a few more practical benefits based on your own experiences.

It apparently works for others too and not just for moms on the go. Here are a few stats worth mentioning that I discovered during my research:

• 1.92 billion people will buy something online in 2019 (via Hosting Facts)
• 72% of e-commerce will take place on a mobile device by 2021 (via Statista)
• According to NPR, the top five determining factors for shopping online are speed, getting to the store, the price of an item, shipping rates, and availability of items.
• U.S. e-commerce sales are estimated to reach $690.84 billion by 2020, increasing to $891.7 billion by 2022 (via EMarketer)
• The e-commerce market in the automotive industry to grow at six percent compound annual growth rate from 2018 to 2023 (via Market Research Future)

So now that we’re all caught up on what’s happening online in the retail market, I am sure you are asking now, so what is digital retailing?

Well, it depends on who you ask. For customers shopping for cars online, it means they can work their own deal, complete a finance application/paperwork online, and lastly pick up the car at the dealership or have the car delivered to their home. For retailers, it may mean the customers are going to build out the deal halfway through the process and finish up the transaction in-store OR completing everything within the transaction from start to finish on the dealership website, giving the customer what appears to be full control of their purchase.

According to Roadster, a digital retailing provider, digital retailing is defined as a way for automotive retailers to “automate every step of the purchase process, from how customers submit their trade-in and credit info to how you communicate and manage the deal jacket.” Dealer Inspire, another retailing provider refers to their online tool as “CAR-BUYING AS EASY AS 1-2-3.” “With a simple three-step checkout process, once a consumer knows which car they want, it can be reserved at a dealership in a matter of seconds.”

Given the amount of information for consumers on the Internet, regarding vehicles, along with the fluidity and ease of use with online shopping in other retail channels; it’s clear having the option to purchase online is a benefit. Bottom line customers want control, transparency, and information. However, they still want to be able to test-drive a vehicle and come into the brick-and-mortar store for the car buying experience.

Stay tuned as the next few months, I’ll dive deeper into my in-store and online journey through digital.

About the Author

Melanie Borden, a Fashion Institute of Technology graduate, has spent the majority of her 14+ year marketing career in the automotive tech industry. Melanie has worked in various atmospheres from social media startups to a public tech company in consulting, marketing, and business development roles. Presently, she is the VP of marketing for Tom Maoli’s Celebrity Motor Cars auto group where she develops and implements all facets of the marketing strategy and built the in-house advertising agency.